Code of Ethics in Management

A code of ethics is a written set of guidelines that dictate how individuals should act in an organization. Business owners and managers often have a specific ethics code because they can have considerable influence in an organization.

Features

Common ethical traits needed in management are integrity, honesty, fairness, objectivity and transparency. Owners and managers are held to these standards because they directly affect the livelihood of employees and the general public. These traits may be found in the organization's mission or values statement.

Function

A code of ethics typically sets the organizational tone for a company. Because ethics can be a personal belief, individuals may see a business situation differently. Using a standard ethics code ensures each manager understands the company's view on what constitutes ethical behavior.

Considerations

Unethical behavior is somewhat difficult to identify and enforce. These situations can be present in gray-shaded business areas and are open to interpretation by different individuals. Companies should attempt to create an ethical code with the least amount of ambiguity to ensure it is easily understood by everyone in the business.

References

• "Management: Theory and Practice"; Carlos C. Lorenzana, M.A.; 1993